Gold Reserve Inc. (TSXV: GRZ) (OTCQX: GDRZF) ("Gold Reserve”
or the "Company”) is providing an update regarding its previously
announced intention to return between US$90 and US$100 million in the
aggregate to holders (the "Shareholders”) of its Class A common
shares (the "Class A Shares”) pursuant to a return of capital
transaction (the "Return of Capital Transaction”).

Following the Government of Canada’s decision on April 15, 2019 to
impose sanctions against 43 additional individuals under the Special
Economic Measures (Venezuela) Regulations of the Special Economic
Measures Act, Gold Reserve’s board of directors (the "Board”)
has determined that it is in the best interests of the Company and its
Shareholders to reduce the aggregate amount of capital to be returned to
Shareholders pursuant to the Return of Capital transaction to
approximately US$75 million, or approximately US$0.76 per Class A Share.

The imposition of the April 15, 2019 sanctions poses a significant
impediment to the Company’s ability to work with government officials
related to the development of the Siembra Minera gold copper project,
and the Company’s ability to work with government officials responsible
for the payment and transfer of funds associated with the Settlement
Agreement.

The Company expects to apply for a license from the US Treasury
Department’s Office of Foreign Assets Control (OFAC) to allow the
Company to pursue payments under the Settlement Agreement and allow
international financial institutions to facilitate such transactions to
North America at least in the near term without violating US sanctions
on Venezuela. The Company may also pursue similar relief from sanctions
imposed under Canadian law. There can be no assurance that the Company
will obtain such relief or licenses.

Receipt of Interim Order

Gold Reserve is pleased to announce that it has obtained an interim
order of the Alberta Court of Queen’s Bench (the "Court”)
authorizing, among other things, the holding of the Company’s annual
general and special meeting of Shareholders (the "Meeting”). At
the Meeting, among other things, the Shareholders will be asked to
consider and vote on a special resolution (the "Special Resolution”)
approving a statutory plan of arrangement (the "Arrangement”)
whereby, subject to the terms and conditions of the Arrangement, the
Company will complete the distribution of US$75 million, or
approximately US$0.76 per Class A Share pursuant to the Return of
Capital Transaction.

The Meeting will be held on June 13, 2019 at 9:30 a.m. at 999 W.
Riverside Avenue, 7th Floor, Masthead Suite, Spokane, Washington, USA.
Meeting materials, including a notice of annual general and special
meeting and information circular, will be mailed shortly to Shareholders
of record as of the close of business on April 24, 2019. The meeting
materials will also be available for review on the Company’s website at www.goldreserveinc.com
under 2019 Annual Shareholder Meeting and under the Company’s profile on
SEDAR at www.sedar.com.

Assuming approval of the Arrangement at the Meeting, the Company will
return to the Court on June 13, 2019 to seek a final order to implement
the Arrangement. Assuming such final order is obtained, the Company
expects to implement the Arrangement and complete the Return of Capital
Transaction on or about June 14, 2019 (the "Effective Date”). All
registered and beneficial Shareholders as of the Effective Date will be
entitled to receive the distribution of approximately US$0.76 per Class
A Share to be made pursuant to the Return of Capital Transaction.

The Company’s board of directors has unanimously approved the
Arrangement and recommends that Shareholders vote FOR
the Special Resolution.

Full details of the Return of Capital Transaction will be described in
the Company’s management information circular and other related
materials. Those documents are expected to be mailed to Shareholders,
filed with applicable Canadian securities regulatory authorities and
made available without charge on SEDAR at www.sedar.com
and on EDGAR at www.sec.gov,
and posted on the Company’s website at www.goldreserveinc.com,
on or about May 9, 2019.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This release contains "forward-looking statements” within the meaning
of applicable U.S. federal securities laws and "forward-looking
information” within the meaning of applicable Canadian provincial and
territorial securities laws and state Gold Reserve’s and its
management’s intentions, hopes, beliefs, expectations or predictions for
the future including without limitation statements with respect to the
completion of the Return of Capital Transaction, the receipt of all
necessary Shareholder, Court, and other regulatory approvals, future
payments under the Settlement Agreement, management and advancement of
the Siembra Minera Project, and the receipt of any applicable license to
transfer funds from Venezuela to Canada through the facilities of
applicable international financial institutions. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management at this
time, are inherently subject to significant business, economic and
competitive uncertainties and contingencies.

We caution that such forward-looking statements involve known and
unknown risks, uncertainties and other risks that may cause the actual
outcomes, financial results, performance, or achievements of Gold
Reserve to be materially different from our estimated outcomes, future
results, performance, or achievements expressed or implied by those
forward-looking statements, including without limitation the timing for
the approval and implementation of the Return of Capital Transaction,
the anticipated tax treatment for Shareholders of the Return of Capital
Transaction, the risks that payments due under the Settlement Agreement
continue to be delayed, the Company may not receive future payments due
under the Settlement Agreement, the Company may not be able to
repatriate payments that are received, imposition of further sanctions
by the U.S., Canada or other jurisdictions that may negatively impact
the Company’s ability to freely transfer funds from Venezuela, the
ability of the Company to obtain the requisite approvals to transfer
funds from Venezuela to Canada through the facilities of applicable
international financial institutions, or our ability to do business in
Venezuela. This list is not exhaustive of the factors that may affect
any of Gold Reserve’s forward-looking statements. For a more detailed
discussion of the risk factors affecting the Company’s business, see the
Company’s Annual Information Form and Management’s Discussion & Analysis
for the year ended December 31, 2017 which have been filed on SEDAR and
are available under the Company’s profile at www.sedar.com
and which form part of the Company’s Form 40-F for the year ended
December 31, 2017 which have been filed on EDGAR and are available under
the Company’s profile at www.sec.gov/edgar.

Investors are cautioned not to put undue reliance on forward-looking
statements. All subsequent written and oral forward-looking statements
attributable to Gold Reserve or persons acting on its behalf are
expressly qualified in their entirety by this notice. Gold Reserve
disclaims any intent or obligation to update publicly or otherwise
revise any forward-looking statements or the foregoing list of
assumptions or factors, whether as a result of new information, future
events or otherwise, subject to its disclosure obligations under
applicable rules promulgated by the Securities and Exchange Commission
and applicable Canadian provincial and territorial securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

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